You locked up your first wholesale deal, now you need to find a wholesale friendly title company that is familiar with wholesale deals and assignment contracts. Unfortunately, not all title companies are cool with wholesale deals. So how do you find wholesale friendly title companies?
You would think it would be as easy as typing in “wholesale friendly title companies near me” into a search engine. However, most title companies do not advertise that they are wholesale friendly. You’ll need to dig deeper.
If you know of anyone else doing wholesale deals in your area, ask them what title company they use. Join Facebook groups for real estate investors in your area and ask the question. You might be surprised how many answers you’ll get. Even in smaller markets, there are usually a handful of title companies that play nice with wholesale deals.
There are some title companies that will do wholesale deals but they require the end buyer and seller sign something that discloses your assignment fee before closing. So if you are making a 30k assignment fee, your seller will see that. In some cases, that might be fine.
As a wholesaler, every deal is a little different Make sure you ask if they require this or not. If they work with wholesalers and close a lot of assignment deals, this should be standard practice for them. Call ahead and make sure you are on the same page. Unless you live in the middle of nowhere, it shouldn’t be hard to find a wholesale friendly title company.
There are almost always other wholesalers doing deals in your market. It’s your job to track them down, do some networking and find out who they use. Hey, maybe you’ll end up doing a JV deal together someday.
